Incoming prime minister Tony Abbott will stay in a flat at the Australian Federal Police academy in Canberra while the official residence, The Lodge, undergoes year-long repairs.

Outgoing prime minister Kevin Rudd performed a ceremonial handover of The Lodge to Mr Abbott on Thursday, but the site needs major repairs amid concerns over the presence of asbestos, dangerous old wiring and a degraded roof.

Mr Abbott's spokesman confirmed the new prime minister, when in Canberra, would stay at a $120-per-night flat at the AFP College in Barton, a training ground for police recruits.

He is expected to live in Sydney's Kirribilli House when in his home city.

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The AFP website says facilities at its Canberra college include a fully-equipped gym.

While accommodation quarters for recruits include a king single bed, a computer with internet access and an ensuite, it is understood Mr Abbott will be staying in a separate flat at the campus which contains a kitchenette and basic facilities.

News Corp Australia reported Mr Abbott had opted to stay at the site rather than a $3000-per-week fancy home rental or an expensive room at the Hotel Realm.

The need for a secure facility is a major factor behind the decision, but the Coalition is also promoting it as a money-saving outcome.

Outgoing deputy prime minister and Labor leadership contender Anthony Albanese said Mr Abbott would not the first prime minister to stay at the AFP college.

"Julia Gillard when she was prime minister stayed in exactly the same AFP quarters that I'm sure Tony Abbott will be staying in, so there's nothing that new about that and I think it's a pity the article didn't pick that up," Mr Albanese told Sky News on Sunday.

The Lodge has had to undergo repairs from time to time but the major renovations about to begin are expected to take at least 12 months.

Comment has been sought from the AFP.

Mr Abbott is yet to be sworn in, more than a week after winning the election.

He is likely to announce his ministry on Monday with the swearing-in slated for Tuesday or Wednesday.